Value Creation through Environmental Contributions

Last updated : October 31, 2016

NTT Group Environmental Statement and 2030 Environmental Targets

Reducing CO2 emissions and otherwise lowering environmental load is recognized as an important issue needing to be addressed internationally in order to create a sustainable society. With expanding its global business and transitioning to the B2B2X model at the core of its business strategies, NTT Group is pursuing sustainable business development over the medium-to-long term. For this reason, reducing our environmental load is absolutely essential to further growth. We are therefore actively advancing initiatives to this end through cooperation with our various stakeholders.

NTT Group Environmental Statement

The NTT Group Environmental Statement compiles our vision for the future of the global environment we aim to build with our stakeholders, our environmental initiatives for building that future, and the company we aim to become through these efforts. The declaration begins with the words "People & Planet in Harmony." These words symbolize our goal of creating a future housing a sustainable society in which everyone and everything around the world is interconnected. To help realize such a future, we at NTT Group will push forward with our daily environmental activities to fully exercise our capabilities as forerunners in environmental contribution.
We have defined three characteristics of the vision for the future encapsulated in the words "People & Planet in Harmony." NTT Group will contribute to endowing the future with these characteristics through the provision of ICT services and cutting-edge technologies.

2030 Environmental Targets

  • *zero emissions: NTT Group defines zero emission as a final disposal rate of 1% or less.

NTT has established the 2030 Environmental Targets, a set of environmental targets to be accomplished by the fiscal year ending March 31, 2031, that is meant to guide us in realizing the future described in NTT Group Environmental Statement.
The 2030 Environmental Targets comprise goals related to the environmental issues prioritized by NTT Group, including those regarding climate change, energy, resources, and ecosystems. To help minimize the CO2 emissions from all actions of society and realize a low carbon future, we have defined targets for our contribution to reductions in society's CO2 emissions, the electrical efficiency of NTT Group's businesses, and the extent to which we help address climate change. For implementing closed loop recycling, we have set a target for the final disposal rate for waste. Furthermore, we have established targets for ecosystem preservation activities to guarantee that we are able to continue receiving the blessings of nature on into the future.

Provision of Services Addressing Environmental Load Reduction Needs

We are witnessing a substantial increase in the needs for means of reducing environmental load, such as by cutting CO2 emissions or effectively using water, to realize a sustainable society.
NTT Group will provide services that respond to these needs in order to help reduce the load placed on the environment while expanding its business.

CASE Solar Power Generation Systems for Reducing CO2 Emissions

Group company NTT FACILITIES, performs planning, design, construction, maintenance, and other tasks related to the Group's telecommunications equipment and power facilities. This company also offers total support for the introduction of solar power generation systems by companies and municipalities that ranges from planning and design to construction and operation. In addition, NTT FACILITIES is engaged in the power generation business with the objectives of contributing to the adoption and expansion of natural energy, which is being advanced by the central government, reducing environmental impacts across society, and accumulating further know-how related to solar power generation.
By generating electricity through the use of solar power, which is natural energy, it is possible to reduce consumption of fossil fuels, such as petroleum, coal, and natural gas, and to make a contribution to lower emissions of CO2 produced by the combustion of fuel.
As of March 31, 2016, we had participated in the construction of 1,280 solar power generation systems in Japan with a total capacity of more than 407 MW. In addition, as an electricity producer we have become a leader in the establishment of an environmentally friendly society by building and operating our own mega solar power plants in 65 locations.

Locations of Solar Power Generation Systems Provided by NTT FACILITIES


Yoshinogari Mega Solar Power Plant
(Nickname: TeruTeru Forest)


F Kanzaki Solar Power Plant

CASE Japan's Foremost Large-Scale Eco-Friendly Complex-Shinagawa Season Terrace

(Photograph provided by Forward Stroke Inc.)

Opened on May 28, 2015, Shinagawa Season Terrace was developed as part of a joint project between Taisei Corporation, Hulic Co., Ltd., Tokyo City Development Co. Ltd., and NTT URBAN DEVELOPMENT CORPORATION. This building was constructed through a large-scale development project based on the theme of coexistence with the environment, designed to contribute to a sustainable community by linking the activities of people with sunlight, wind, water, greenery, and other elements of nature. Moreover, the development project was conducted in conjunction with the reconstruction of the Shibaura Water Reclamation Center, which is managed by the Tokyo Metropolitan Government and has supported urban activity and the lives of residents for more than 80 years since 1931. The aim of this move was to make use of the plentiful space above the facility.

Eco-Friendly Features of Shinagawa Season Terrace

One concept behind Shinagawa Season Terrace was the development of a cutting-edge green building, and various eco-friendly features were installed to this end.
Specifically, solar lighting systems, LED lighting combined with next-generation people sensors, automated sunlight tracking blinds, 100 kW solar power generation facilities, systems for using reclaimed water and wastewater heat, and other state-of-the-art environmental technologies were actively introduced into this building. In addition, an expansive 3.5-hectare park was established next to the building. We believe this building serves as an advanced model case on how to develop sustainable communities.
These various features of Shinagawa Season Terrace have led to reductions in CO2 emissions throughout the building's office space, and overall emissions are 43% lower than the standard level.

Eco-Friendly Systems Installed at Shinagawa Season Terrace

CO2 Emissions of Shinagawa Season Terrace

  • *Source: Metropolitan Tokyo Architectural Energy Savings Evaluation Report

Utilization of NTT Group Technologies

Technologies from NTT Group companies can be found throughout Shinagawa Season Terrace.
To reduce environmental impacts, NTT FACILITIES supplied the building with solar power generation facilities as well as a building energy management system that tracks energy usage conditions and conducts energy-saving diagnoses. Attention was also paid to disaster countermeasures, and satellite phone services from NTT DOCOMO were introduced for use in times of disaster alongside earthquake early warning services from NTT Communications. Telecommunications equipment includes fiber-optic cables from NTT East and public Wi-Fi from NTT Broadband Platform.
These cutting-edge NTT Group technologies help reduce the environmental load of Shinagawa Season Terrace while also providing solutions for various social issues.

Environmental Ratings and Third-Party Verification

Shinagawa Season Terrace is neighbored by an expansive 3.5-hectare park that breathes life into the area and creates opportunities for community interaction. This park enriches this business district while also contributing to the area as a spot for breeding a sense of community. Located at the border between the Musashino Plateau area and the Tokyo Bay coastal area, this park is anticipated to merge the ecosystems of both areas. The park was rated highly by the Organization for Landscape and Urban Green Infrastructure, earning Shinagawa Season Terrace certification under the Social and Environmental Green Evaluation System (SEGES) as a development project that contributes to society and the environment through the preservation and creation of greenery (SEGES for Urban Development).
In addition, the various other eco-friendly features of Shinagawa Season Terrace have won the building the highest ratings under numerous third-party verification systems, including an S rank under the Comprehensive Assessment System for Built Environment Efficiency (CASBEE).

NTT Group's Contribution to Reducing Society's CO2 Emissions

NTT Group's Contribution to Reducing Society's
CO2 Emissions through ICT Services*

ICT contributes to the reduction of the environmental load of our lives and society in various ways. For example, the digital distribution of books, music, movies, and other content cuts back on the energy consumed in transporting the books, CDs, DVDs, and other physical media that are normally used to distribute such content. In addition, to providing alternatives for moving goods and people, ICT can also contribute by making our lives and work more efficient.
In the fiscal year ended March 31, 2016, NTT Group as a whole contributed to a reduction in the CO2 emissions of society of 60.32 million tons through the utilization of ICT.
The spread of smartphones and the development of high-speed, large-capacity networks have given rise to various new services, such as video streaming services, and expanded the opportunities for customers to utilize these services. The CO2 reducing benefits of this situation have also been growing with each coming year.
NTT Group will continue contributing to the reduction of society's environmental footprint in various fields by utilizing ICT.

  • *Calculation method: NTT Group's contribution to reducing society's CO2 emissions was calculated using the Telecommunication Technology Committee's Methodology for the Assessment of the Environmental Impact of Information and Communication Technology Goods, Networks and Services (JT-L1410) and Life Cycle Assessment Society of Japan's Guideline for Information and Communication Technology (ICT) Eco-Efficiency Evaluation. The results of an online questionnaire survey regarding average ICT service usage time and usage of different ICT services were also used.
Notes:
Data collected from operations in Japan only

Reduction of the Environmental Load of NTT Group's Business

To reduce the environmental load of its business activities to the greatest extent possible, NTT Group is taking steps to track and analyze what types of resources and energy it is using in what processes and what type of environmental load are occurring.
In addition to direct environmental load of its business activities, the Group also calculates and discloses information on greenhouse gas emissions from across the value chain (Scope 3 of the Greenhouse Gas Protocol), including such indirect emissions as those from ICT service provision.
In the fiscal year ended March 31, 2016, greenhouse gas emissions applicable under Scope 3 amounted to 17.59 million tons. Of these emissions more than 85% came from category 1 (purchased goods and services), category 2 (capital goods), and category 11 (use of sold products). We are promoting the introduction of products with low environmental load based on our Guidelines for Green Procurement and pursuing initiatives aimed at encouraging the use of energy-saving devices by our customers.

  • *Scope 1: Greenhouse gas emissions generated directly; Scope 2: Greenhouse gas emissions generated indirectly in conjunction with energy use; Scope 3: Greenhouse gas emissions generated indirectly over the whole value chain
  • ** Categories: 15 subdivisions categorizing activities from portions of the value chain covered under Scope 3 (activities not conducted directly by a company) including activities related to products and services purchased by the company (upstream) and activities related to products and services sold by the company (downstream)

The NTT Group's Material Balance* (Fiscal Year Ended March 31, 2016)

  • *Relationship between volume of resources and energy required for business activities and associated waste and emissions production

CO2 Emissions Reductions through Energy-Saving Equipment

CO2 Emissions from Business Activities

The reduction of CO2 and other greenhouse gas emissions, which are known causes of climate change, is an important issue for the international society. In the ICT field, a primary area of business for NTT Group, the advancement of technologies brings concerns for the rises in electricity consumption that accompany the need for processing larger volumes of data and cooling massive servers. For this reason, ICT companies are increasingly being expected to make their operations more energy efficient in order to lower emissions.
NTT Group provides data center services and various other ICT services, and the use of electricity purchased to supply such services accounts for over 90% of the Group's CO2 emissions. We are therefore implementing energy-saving initiatives, realizing that these efforts will also contribute to reductions in CO2 emissions.
NTT Group uses large amounts of electricity, with purchased electricity amounting to more than 8.0 billion kWh a year. Due to the rise in the price of electricity as a result of the start of the feed-in tariff scheme for renewable energy, NTT Group faces a large risk that it will be affected financially. Accordingly, reductions in CO2 emissions through the use of energy-saving equipment are also being pursued from a financial standpoint. Measures conducted in the fiscal year ended March 31, 2016, included consolidating telecommunications equipment, making equipment more energy efficient, and introducing new technologies, such as optimal air-conditioning control systems and direct current (DC) power transmission systems. These measures for reducing CO2 emissions from electricity consumption were conducted through an investment of ¥7.8 billion and contributed to a 940.0 million kWh decrease in electricity consumption. By advancing such efforts, we are contributing to the realization of a low-carbon society while simultaneously mitigating financial risks for the Group.

Breakdown of CO2 Emissions from NTT Group

End of year / month 2012/3 2013/3 2014/3 2015/3 2016/3
CO2 from electricity (Millions of t-CO2) 3.53 4.17 4.61 4.84 4.67
(Breakdown) Electricity usage
(Billions kWh)
8.66 8.56 8.52 8.95 8.74
Emission coefficient
(kg/kWh)*
0.408 0.488 0.541 0.540 0.534
CO2 from gas and fuel consumption
(Millions of t-CO2)
0.177 0.164 0.164 0.159 0.139
CO2 from company vehicles
(Millions of t-CO2)
0.066 0.059 0.055 0.047 0.042
CO2 from heating (Millions of t-CO2) 0.017 0.016 0.020 0.026 0.027
Total CO2 emissions (Millions of t-CO2) 3.79 4.41 4.85 5.07 4.87
  • *Weighted average of emission coefficients announced annually by each power company weighted according to the amount of electricity from each company used by NTT Group
Notes:
Data collected from operations in Japan only

Energy Saving at Data Centers

NTT Communications offers data centers with power usage effectiveness (PUE)* of less than 1.2, and NTT COMWARE CORPORATION offers data centers with PUE of less than 1.1, which are at the world's highest level for energy efficiency. We are striving to enhance PUE for our other data centers as well by introducing five-star equipment with the highest level of energy efficiency in accordance with the NTT Group Energy Efficiency Guidelines. NTT FACILITIES has been advancing the development of higher efficiency technologies for electrical power units and air-conditioning systems, central data center air-conditioning control systems, and other technologies and thereby contributing to reduced electricity consumption at centers.
We are also operating some data centers using renewable energy and have installed a 5 kW solar power generation system at NTT East's Komagome Data Center. Solar power systems have also been set up at NTT East's Chiba Data Center; NTT West's Osaka Data Center; NTT Communications' Tokyo No. 2, No. 4, and No. 5 data centers; and the Takamatsu No. 2 Data Center in an effort to promote energy savings at these facilities.

  • *Power usage effectiveness: PUE is calculated by dividing the total electricity consumption of a data center by the electricity consumption of the servers and other IT equipment it houses. It is a figure larger than 1, with higher efficiencies represented by values approaching 1.
CASEEnergy-Saving Verification Project for HVDC Power Transmission System at U.S. Data Center

Electricity is supplied in the forms of alternating current (AC), which is used from household outlets, and direct current (DC), which is used on railroads, for telecommunications, and in electrical circuits. Transforming electricity into a different current type results in energy loss. For this reason, NTT Group has been moving forward with the introduction of high-voltage direct current (HVDC) power transmission systems. These systems reduce the number of times electrical current must be transformed, thereby realizing greater energy savings than would be possible with conventional AC power transmission systems. With the aim of further spreading and developing these systems, the Group has partnered with the New Energy and Industrial Technology Development Organization (NEDO) of Japan to conduct a verification project in the United States. The system to be tested in this project is linked to a solar power generation system that supplies it with DC electricity and is anticipated to display substantial energy saving benefits. With these benefits, the system is expected to contribute to the creation of larger and more energy-efficient data centers. The system is thus garnering much attention, and we expect that usage of this system will spread throughout the United States and other overseas markets.
Through a contract from NEDO, NTT FACILITIES began constructing an HVDC power transmission system at the Texas Advanced Computing Center of the University of Texas at Austin, the United States, in August 2015, and is undertaking an energy-saving verification project leading up to March 2017 that began in August 2016. The United States is home to the world-leading ICT market. By conducting a verification project in this market, we will be able to present objective data on the benefits of HVDC power transmission systems, which include energy savings, reliability, and ease of maintenance and operation. This project will thereby help us spread usage of HVDC power transmission systems and work to reduce energy consumption at data centers.
Going forward, we will utilize the findings of this verification project to globally deploy HVDC power transmission systems in markets centered on the United States, the world's largest market for data centers.

Overview of System to Be Verified

Initiatives in Resource Reduction, Reuse, and Recycling

Although our one-way society of mass production, consumption, and disposal has brought affluence and convenience to our lives, it has also created massive amounts of waste and given rise to various issues, such as concern for illegal dumping and the depletion of natural resources. The impacts of these issues extend beyond the continuity of business activities. To resolve these issues, we must initially review how companies manage their businesses as well as our social and economic systems and shift to a closed loop society.
At NTT Group, we practice the 3Rs (reduce, reuse, recycle), working to reduce the amount of materials consumed by our business activities and reuse or recycle the resources that are consumed. We thereby aim to contribute to the realization of a closed loop society while furthering the sustainable development of NTT Group.

Results of Waste Final Disposal Rate

In the fiscal year ended March 31, 2016, the amount of waste produced by NTT Group was 683 thousand tons. Of this amount, 674 thousand tons of waste was recycled and 1 thousand tons of waste was reduced via incineration. As a result, the amount of waste sent to landfills for final disposal was approximately 6 thousand tons (making for a final disposal rate of 0.9%), and the Group was thus able to achieve its target of zero emissions (emissions of less than 1%) in terms of the final disposal rate for waste.

Reuse and Recycling of Communications Equipment

For the purpose of providing telecommunications services, NTT Group owns various types of communications equipment, including telephone poles, switching equipment, communications cables, public telephone booths, and public telephones. These are decommissioned and disposed of when they reach the end of their service life or are replaced during system upgrades for new services. We reuse and recycle decommissioned communications equipment within the Group.
For example, concrete waste from discarded concrete poles is recycled for use as road building material. Public telephone booths and public telephones are taken to a specialized intermediate treatment plant, where parts of the booths are sorted into aluminum, stainless steel, glass, and plastic. Similarly, the baseboards, copper wires, and various plastics used in public telephones are meticulously sorted. These components are then sent to a recycling plant to be recycled into such materials as rare metals, copper, and pellets. At intermediate treatment plants, materials are carefully sorted by hand. As a result, the precision of this sorting has a large influence on the recycling rate.
To prevent the inappropriate treatment of the materials, such as illegal dumping, NTT East collaborated with NTT-ME to construct a system that uses GPS and photography to confirm proper handling from the site of disposal to the disposal plant.

Mobile Phone Recycling Process Receiving Wide-Area Authorization from the Ministry of the Environment

Containing gold, silver, copper, palladium, and other metals, mobile phones could be regarded as a valuable recycling resource in Japan with its scarcity of mineral resources. NTT DOCOMO has accordingly collected used mobile phones from customers since the fiscal year ended March 31, 1999, at its approximately 2,400 docomo shops throughout Japan and through various events.
In the fiscal year ended March 31, 2012, NTT DOCOMO introduced a new recycling process in which plastics used in mobile phones are pyrolyzed to turn them into oil for use as a fuel, after which gold, silver, copper, and other metals are recovered from the residues. This is the only process in the telecommunications industry to have been authorized by the Ministry of Environment as a wide-area general and industrial waste disposal program*1. In the fiscal year ended March 31, 2015, we made a broad call for cooperation in collecting mobile phones by exhibiting at CEATEC JAPAN and by delivering our message through social networking services.
Through these efforts, we were able to collect 4.17 million mobile phones*2 in the fiscal year ended March 31, 2016, bringing the aggregate total of collected phones to 95.6 million since the collections began. Corporate customers have also established systems for collecting mobile phones, with 424 companies cooperating in the fiscal year ended March 31, 2016.
We will seek to achieve greater efficiency in our recycling system and promote the collection of used mobile phones from customers going forward.

  • *1 Wide-area general and industrial waste disposal program: A special measure specified in Articles 9-9 and 15-4-3 of the Waste Management and Public Cleansing Act (#137, 1970) that relieves businesses engaged in the effective recycling of their products of the need to obtain local authority permissions related to waste disposal
  • *2Figures for the fiscal year ended March 31, 2016, include units collected for reuse.